Under pressure in China, Apple plays the India card

Under pressure in China, Apple plays the India card

In Tamil Nadu, electronics brings Chennai back to life. The capital of the Tamil region has become one of the industrial centers of the country. Its opening to Asia, through the Bay of Bengal, has played its part. Due to its location, Chennai today attracts producers from all over the world thanks to its cheap labor and the presence of numerous subcontractors. All that was missing was a big name in tech to formalize this flight. Apple took care of it. On September 7, the Californian giant will present its iPhone 14 to the world. An object whose production will no longer be exclusively assembled in China.

Diplomatic deadlock

A small revolution in the habits of the brand. Apple is expected to transfer some of its capacity to India from October, and the factories of its Taiwanese subcontractor Foxconn will begin delivering its first iPhone 14s to the country in the fall, according to analyst Ming-Chi Kuo of TF International Securities. Almost at the same time as in China. The gap had never been so narrow. This choice reflects Apple’s ambitions, but also, and above all, its concerns.

Because Nancy Pelosi’s visit to Taiwan in early August damaged relations between China and the United States. The Speaker of the US House of Representatives notably irritated the Chinese authorities by meeting with several Apple subcontractors, including the chipmaker TSMC and the company Pegatron. Pressured by Beijing, the brand will have the greatest difficulty in extricating itself from this diplomatic impasse, suffering in retaliation several labeling checks from the authorities upon the arrival of its products in China. A final warning for its CEO, Tim Cook, and a clear signal sent to US President Joe Biden. Something to think about Apple, which had never before found itself faced with such a dilemma.

Reference: www.challenges.fr

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